Following a strong 4Q in 2012, the 1Q 2013 sales growth was up 6.2 percent, a 5.1 percent increase from 4Q 2012, according to Floor Covering Weekly’s (FCW) Executive Quarterly Index. The 2012 sales growth was up 4.4 percent over 2011.

It is worth noting that January 2013 was the strongest growth in the history of the survey. The survey also reports that 2013 sales growth is now expected to be up 7.5 percent.

The weakest category in 1Q 2013 is laminate, with vinyl coming in as the strongest category. According to the survey, manufacturers posted the strongest sales growth in 1Q 2013 while retailers and distributors lagged behind.

As for regions, the Southwest region showed the strongest growth and the Northeast region was the weakest; the Midwest showed the weakest growth in 4Q.

All three end-markets (residential new construction, residential replacement and commercial) are expected to show stronger growth in 2013 versus 2012. Also, all three end-markets are already expecting higher growth in 2013 versus 90 days ago.

Vinyl’s stronghold on the industry is expected to continue in 2013, with the category to be strongest throughout the year.

FCW respondents said that1Q profits were slightly above expectations, and raised 2013 profit forecasts slightly over the last 90 days. Respondents also noted that profits are expected to increase nearly 6 percent in 2013. Input costs are anticipated to be up 4.5 percent in 2013.

Additionally, price increase realization is below historic rates to this point in 2013, according to survey respondents.

Of those surveyed, 51 percent are retailers, 29 percent manufacturers and 20 percent distributors. Geographically, 21 percent of respondents are from the Northeast, 19 percent from the Southeast, 26 percent from the Midwest, 16 percent from the Southwest and 17 percent from the West. Sixty- five percent of respondents serve markets in the residential business, 30 percent serve commercial businesses and 5 percent from other market segments.